Canada urged to delay climate change talks until next US presidency

Uncertainty over US approval of TransCanada's Keystone XL pipeline has become an “irritant” between the two countries, a bank official said. The next window to change the “core fundamentals” of the relationship will come in 2017, when President Barack Obama’s successor takes office, he said.

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By ANDREW MAYEDA

Bloomberg

Canada should wait to negotiate a continental accord on
climate change until the next US president takes office,
Canadian Imperial Bank of Commerce Vice Chairman Jim Prentice
said.

Uncertainty over US approval of TransCanada's Keystone XL
pipeline has become an irritant between the two
countries, Prentice said in a speech given in Ottawa. The
next window to change the core fundamentals of
the relationship will come in 2017, when President Barack
Obamas successor takes office, he said.

Our opportunity to engage the US will come, said
Prentice, who was a senior cabinet minister in Prime Minister
Stephen Harpers government until 2010. When it
does, we need to be ready. We need to work with the Americans
to achieve an accord relating to climate change and the oil
sands.

Emissions from Albertas oil
sands have become a focal point for those apposed to
Keystone, which would carry bitumen to Gulf Coast refineries.
Opponents like billionaire Tom Steyer say the line would
encourage companies to exploit the worlds third-largest
crude reserves, unlocking vast amounts of carbon and accelerating climate
change.

TransCanada first applied to build Keystone XL in September
2008. Producers are counting on the project to help ease a
transportation bottleneck and raise the price of
Canadas heavy crude, which averaged $24.50/bbl lower
than the main US benchmark last year.

Continental Regime

Harper has resisted pressure to introduce rules to reduce
greenhouse gas emissions by the nations oil
and gas sector. In an interview with Bloomberg News
in January, the prime minister said his government would
prefer to develop a North American regulatory regime with the
US, a position echoed by Alberta Premier Alison Redford this
month.

Obama said in June the US wouldnt approve Keystone if
its found to significantly exacerbate the problem
of carbon pollution.

To give itself more leverage with the US before 2017, Canada
should move ahead with pace and with purpose in
building Enbridge's Northern Gateway pipeline to the west
coast and TransCanadas Energy East route east, Prentice
said. Harpers cabinet must decide this year whether to
approve Northern Gateway, designed to create an export hub to
Asia.

Prentice said Canada must also build terminals in British
Columbia to export liquefied natural gas (LNG), pursue
genuine engagement with aboriginal groups and
improve the countrys environmental performance.

In a world concerned about carbon, Canada will either be an
environmental leader or have other
jurisdictions dictate our environmental policies, he
said. If you doubted this before, surely your eyes have
been opened by the US administrations sustained focus
on the scope of greenhouse gas emissions created by oil sands
production.

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